Question: Please show formula or rationale THANK YOU! Problem statement. Wood County Hospital consumes on average 500 boxes of bandages per week. The weekly consumption follows


Please show formula or rationale
THANK YOU!
Problem statement. Wood County Hospital consumes on average 500 boxes of bandages per week. The weekly consumption follows a normal distribution, with standard deviation of the weekly consumption being 100 boxes. The resupply (delivery) lead-time is 4 weeks. The purchasing price of bandages is $70 per box. The cost of processing and placing an order is $60, and the cost of holding one box in inventory for a year is 15% of its purchasing price. Assume 52 weeks per year. The manager uses ROP (continuous review) policy to manage inventory, and sets 97% service level. Answer the following questions. Question 1 2 pts The manager wants to optimize the costs related to the cycle inventory, by setting Q=EOQ. The order quantity in all orders should be: Question 2 2 pts The safety stock needed to meet the required service level is: Question 3 1 pts The reorder point (ROP) is: Question 4 1 pts The average inventory (cycle inventory and safety stock) level isStep by Step Solution
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